Mr Kendall said resource companies had been feeling the pressure of capital expenditure coupled with rising labour costs and investors expectations.

‘‘I think a few investors are taking a view that the challenges in that part of the market are probably greater than what’s being priced into a stock price,’’ he said.

The financial sector, which had been responsible for a large part of the positive run this year, also felt the wrath of the pull-back. NAB dropped 3.7 per cent to $29.42, CBA fell 3.1 per cent to $64.81, Westpac slipped 2.8 per cent to $29.49 and ANZ lost 2.6 per cent to $27.98.

Origin Energy was one of the biggest losers of the day, down 8.5 per cent to $11.33, after the company’s half year net profit fell more than $200 million from the corresponding period in the previous year.

Whitehaven Coal shares dived 6.1 per cent to $2.94 as managing director Tony Haggarty stepped down after rumoured difficulties in dealing with Nathan Tinkler since he became a major shareholder.

Qantas was one of the few that bucked the downward trend. The airline reported it had more than doubled its first half net profit to $111 million. Its shares finished up 2.8 per cent to $1.66.

IAG shares jumped 2.8 per cent to $5.57 after the insurer reported a more than tripling of its first half earnings to $461 million, citing fewer claims from natural diaster than in previous earnings as a major factor behind the jump.

This story was found at: http://www.theage.com.au/business/markets/heavy-losses-see-35b-wiped-off-market-20130221-2esvo.html